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    Competitive Analysis

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    Rüel Dellova
    The document analyzes the competitive environment for a new rice cake product called Pukape using Porter's Five Forces model. It finds: 1) The threat of new entrants is low since the product concept can easily be copied. 2) The bargaining power of suppliers is high since ingredients are readily available. 3) The bargaining power of buyers is high since customers are price sensitive. 4) The threat of substitutes is high as competitors may copy and improve upon the product. 5) There is a high degree of competitive rivalry due to many existing delicacy businesses serving the market.

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    Competitive Analysis

    Uploaded by

    Rüel Dellova
    30 views3 pages
    The document analyzes the competitive environment for a new rice cake product called Pukape using Porter's Five Forces model. It finds: 1) The threat of new entrants is low since the product concept can easily be copied. 2) The bargaining power of suppliers is high since ingredients are readily available. 3) The bargaining power of buyers is high since customers are price sensitive. 4) The threat of substitutes is high as competitors may copy and improve upon the product. 5) There is a high degree of competitive rivalry due to many existing delicacy businesses serving the market.

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    COMPEPE

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    The document analyzes the competitive environment for a new rice cake product called Pukape using Porter's Five Forces model. It finds: 1) The threat of new entrants is low since the product concept can easily be copied. 2) The bargaining power of suppliers is high since ingredients are readily available. 3) The bargaining power of buyers is high since customers are price sensitive. 4) The threat of substitutes is high as competitors may copy and improve upon the product. 5) There is a high degree of competitive rivalry due to many existing delicacy businesses serving the market.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    30 views3 pages

    Competitive Analysis

    Uploaded by

    Rüel Dellova
    The document analyzes the competitive environment for a new rice cake product called Pukape using Porter's Five Forces model. It finds: 1) The threat of new entrants is low since the product concept can easily be copied. 2) The bargaining power of suppliers is high since ingredients are readily available. 3) The bargaining power of buyers is high since customers are price sensitive. 4) The threat of substitutes is high as competitors may copy and improve upon the product. 5) There is a high degree of competitive rivalry due to many existing delicacy businesses serving the market.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Competitive Analysis (Porter’s Five Forces Model)

    1. Threat of New Entrants

    Pukape is new to the market because of its unusual flavor which is barako coffee but the

    product’s base which is the puto is very common so there’s a possibility that other competitors

    might do it as well. Since the proponent only added flavor to the mixture to make it unique,

    competitors could make a research about that product and improved it to gain a step ahead that

    will surely affect the company’s sales. Other rice cakes with unique flavors might also arise

    because of this concept so the entrepreneur cannot take away the possibility that many competitors

    will stand up and take the chance, thus making the threat of new entrants low.

    2. Bargaining Power of Suppliers

    In doing the product, the proponents used flour, baking powder, sugar, powdered milk and

    the barako coffee. For the packaging, they used disposable plastic container and the other materials

    that are needed is already provided. The ingredients for the product are attainable because it’s

    common in the market and Tanauan Public Market can provide all these ingredients well. Batangas

    is a center of trading for barako coffee so it will never be a problem especially in Tanauan that also

    offers it on market places. While for the disposable plastic container, the public market offers

    variety of goods including the disposable containers, so the entrepreneurs could get a cheaper price

    by purchasing bundles. Based on this information, the bargaining power of supplier is high.

    3. Bargaining Power of Buyers

    The public is price sensitive when it comes to the goods that they will be purchasing so the

    proponents can say that the bargaining power of buyer is relatively high. The company’s product

    has a cheap price if it’ll be presented to the market and the entrepreneurs also offers discount if the

    customers will order in huge quantity or by containers. The price that has been offered is fixed
    except if there are changes in the cost of ingredients, but they will continuously offer discounts to

    encourage customers and resellers.

    4. Threats of Substitute

    Although the company offers a cheap price for the product, customers can find an

    alternative if they’re not satisfied anymore. If the product will be noticed by the market, there is a

    tendency that competitors will copy the concept and improved it to gain sales and step ahead of

    the other entrants. The proponents can say that the threat of substitute is high. To handle this

    problem, the entrepreneurs will continuously improve their product to cope with the changing

    tactics of the market.


    5. Degree of Competitive Rivalry

    Market already offers rice cakes and native delicacy that people patronized for years. Many
    delicacy businesses are established and serving loyal customers for long time despite of the non-
    stop competitors arising. But the market is changing, people tend to find unique delicacy that can
    also satisfies their taste buds and it leads to opportunities to enter the industry. From this
    observation, there is a high degree of competitive rivalry.

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